Carborundum Universal Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Carborundum Universal Ltd trades at ₹1,075, in a confirmed uptrend and 17 weeks into that stage. That is +5.9% against its own 200-day average. It sits at 66% of a 52-week range of ₹756 to ₹1,242. On relative strength it is currently behind the NIFTY 500 on a trailing-13-week view (3 weeks and counting).

Today the stock is in a confirmed uptrend — week 17 of stage 2, confirmed. At ₹1,075 it trades +5.9% versus its 200-day average and sits at 66% of its 52-week range (₹756–₹1,242).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +522% while the NIFTY 500 moved +256% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock is currently behind (3 weeks and counting; last ahead the week of 2026-08-21) — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Carborundum Universal Ltd trades at 81.7× P/E, at the pricey end of its own range (96th percentile). Its long-run median P/E is 38.8×, measured across 10.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 81.7× is at the pricey end of its own range (96th percentile), against a long-run median of 38.8× measured over 10.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −33.5% against a +8.3% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +3.3%/yr price move, ~−6.6%/yr came from earnings growth and ~+9.9 pp from the multiple (expanding); over 10y, of the +14.8%/yr price move, ~+5.1%/yr came from earnings growth and ~+9.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is full against its own past, so the story rests on the earnings line underneath it, not the multiple.

The PEG ratio and its quarterly curve, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 55% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Carborundum Universal Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −48.5% at the trough to −23.4%, a 3-quarter improving streak, ROCE slipping at 11.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

32.3/100 — rank 3 of 3 in Abrasives & Grinding Wheels · 79% evidence confidence

Carborundum Universal Ltd scores 32.3 out of 100 against the 3 companies it is compared with in Abrasives & Grinding Wheels, ranking 3. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 8.1 + 9.3 + 6.6 + 8.3 = 32.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Carborundum Universal Ltd reported ₹1,427 Cr of revenue in the Jun 26 quarter, +17.1% year on year. That is the 8th straight quarter of year-on-year growth. Over 10 years it has compounded at 10.4% a year. The last full year, FY26, came in at ₹5,206 Cr. The last four reported quarters add to ₹5,414 Cr.

FY26 revenue came in at ₹5,206 Cr (+6.4% on the year), capping 10 years at 10.4% compound. The latest quarter (Jun 26) printed ₹1,427 Cr, +17.1% year on year — the 8th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +10.2% growth against the decade's 10.4% — the current year is running in line with its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +10.2% over the last 4 quarters against +7.4%/yr over the last 8 — stabilising; TTM profit −23.4% vs −37.2%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Carborundum Universal Ltd's operating margin is 9.0% in the Jun 26 quarter, −1.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0% to 18.0%. The current quarter is running below every full year in that window.

The latest quarter's operating margin is 9.0%, −1.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 11.0%–18.0%.

🚨 Why the margin moved: operating margin went −0.5 pp year on year while gross margin went −3.5 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Carborundum Universal Ltd earned ₹80.0 Cr of net profit in the Jun 26 quarter, +33.3% year on year. Full-year FY26 profit was ₹168 Cr. The 10-year compound rate is 0.8%. That is 5.6% of the quarter's revenue. The same quarter a year earlier earned ₹60.0 Cr. 1 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹80.0 Cr, +33.3% year on year. On the full year, FY26 printed ₹168 Cr (−43.8%), and the 10-year compound rate is 0.8%.

Why profit moved: revenue contributed +17.1% and the margin −1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit −36.0% vs revenue +10.2%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 135% of Carborundum Universal Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹367 Cr of operating cash against ₹168 Cr of profit. After ₹460 Cr of capital spending, ₹−93.0 Cr was left as free cash.

FY26: operating cash of ₹367 Cr against reported profit of ₹168 Cr, leaving free cash of ₹−93.0 Cr after ₹460 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 135% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 135%: the cash cycle stretched 57 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 1.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Carborundum Universal Ltd's cash conversion cycle runs 187 days in FY26, up from 130 days in FY21. Capital spending ran ₹1,083 Cr over the last 3 years. At FY26 sales of ₹5,206 Cr each day of that cycle holds about ₹14.3 Cr, so roughly ₹2,667 Cr sits inside the business at any moment.

FY26: debtors at 62 days, inventory at 200 days — roughly 6.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 187 days, looser than FY21's 130.

The full loop: cash goes out to suppliers and production on day 0; stock waits 200 days to sell; customers pay about 62 days after that; and suppliers themselves are paid at 76 days — netting out to the 187-day cycle.

In money terms: at FY26 sales of ₹5,206 Cr, each day of the cycle holds about ₹14.3 Cr — so the 187-day loop keeps roughly ₹2,667 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,083 Cr over the last 3 fiscal years against ₹650 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹141 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Carborundum Universal Ltd earns a ROCE of 11% in FY26. That is up from a trough of 10% in FY15. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 3.2% net margin on 0.99× asset turns.

FY26 ROCE is 11%, recovered from a FY15 trough of 10% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 3.2% net margin × 0.99× asset turns × 1.35× balance-sheet leverage ≈ 4.3% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The quarterly return curves and the return-on-invested-capital overlay, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 55% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Carborundum Universal Ltd carries ₹413 Cr of borrowings against ₹3,900 Cr of equity in FY26, a debt-to-equity of 0.11. Operating profit covers the interest bill 31×. Over 5 years borrowings went from ₹62.0 Cr to ₹413 Cr. Capital spending ran ₹1,083 Cr across the last 3 of those years.

FY26: borrowings of ₹413 Cr against equity of ₹3,900 Cr — a debt-to-equity of 0.11. Operating profit covers the interest bill 31×. Over 5 years borrowings went from ₹62.0 Cr to ₹413 Cr while capital spending ran ₹1,083 Cr in just the last 3 — part of the build-out is riding on borrowed money.

The total-debt and debt-to-equity series, which only the second data source carries, are not drawn on this page: its two data sources disagree by up to 55% on reported income across 14 comparable periods. A figure two sources cannot agree on is not drawn — the gap is a decision, not missing data.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 2.3 points of Carborundum Universal Ltd over 8 quarters, the biggest move on the register. That takes promoters to 38.9% of the company. Foreign institutions moved −1.6 points over the same window, to 11.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −2.3 points over 8 quarters to 38.9%; Foreign institutions: −1.6 points over 8 quarters to 11.1%; Domestic institutions: +0.8 points over 8 quarters to 29.1%.

🚨 Why the register moved: promoters drove it (−2.3 points), alongside foreign institutions (−1.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Carborundum Universal Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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